What is the legal significance of attaching the addendum to the lease for a Floyds 99 Barbershop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
connection with the sale of Tenant's corporate stock or assets. In the event of such an assignment, Tenant shall automatically be released from all obligations under this Lease. Landlord understands and agrees that, in connection with Tenant's assignment or subletting of the Lease to a duly authorized franchisee of Franchisor, Franchisor shall be permitted to charge "additional rent" or "percentage rent" or other charges to its franchisee as part of its regular plan of franchising, and Landlord shall not be entitled to any consideration or additional rent as a result of any fees paid to Franchisor by franchisee pursuant to the Lease or otherwise.
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- NOTICE TO FRANCHISOR. Prior to the enforcement of any remedies under the Lease, Landlord agrees to provide Franchisor with written notice of Tenant's default under the Lease. Franchisor shall have ten (10) days after such notice to cure monetary defaults and thirty (30) days after such notice to cure non-monetary defaults. Notice to Franchisor shall be addressed as follows:
Floyd's 99 Franchising, LLC Attn: Leasing/Real Estate 7900 E. Berry Place Greenwood Village, CO 80111
Franchisor shall have the right, but not the obligation, to succeed to Tenant's rights upon Tenant's default by taking an assignment of Tenant's interest under this Lease and curing such default.
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- NO RADIUS CLAUSE. Any radius restriction in the Lease related to Tenant or the operation of a FLOYD'S 99 barbershop shall be null and void.
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- NO RELOCATION CLAUSE. Any right in the Lease which allows Landlord to relocate Tenant is hereby deleted.
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- EXCLUSIVE. Throughout the Term, as it may be extended under the terms of this Lease, Tenant shall have the exclusive right in the Shopping Center to operate a retail hair care business which provides hair care services and sells related hair care products. Landlord agrees that it shall not enter into any lease of space or permit any tenant to sublease or assign its lease, or sell any premises, within the Shopping Center or on any adjacent land owned or controlled by Landlord or its partners, to a person or entity with the following use: (i) a retail hair care business deriving more than 5% of its gross sales from the sale of haircuts or hair care products; or (ii) a wholesale business deriving more than 5% of its gross sales from the sale of hair care products. If Landlord violates the terms and spirit of the exclusivity granted to Tenant above and, if such a violation occurs, in addition to any other remedies Tenant may have at law or in equity, Tenant shall have the right to terminate this Lease upon thirty (30) days prior written notice.
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- FRANCHISOR'S MARKS & SIGNAGE. Notwithstanding any sign criteria contained in the Lease, Landlord hereby grants and approves the following:
- a. Marks. Tenant has the right to display Franchisor's trade and service marks in accordance with the specifications required by Franchisor, subject only to the provisions of applicable law, for the term of the Lease.
- b. Opening Signage. Tenant shall have a license to display "Coming Soon," "Now Hiring" or "Grand Opening" banners on or near the Premises during such period from the date the Lease is executed and continuing until the date that is eight (8) weeks following the opening of the Premises; and
- c. Permanent Signage. Tenant shall be able to erect the exterior signage and awning as described in Exhibit B attached hereto and incorporated herein by this reference. Subject to Tenant's receipt of required approvals by appropriate regulatory bodies, Tenant shall be allowed to: (a) place appropriate signage on the entrances to the Premises advertising Tenant's hours of operation and other information; (b) display its logo on signage displayed at the Premises; (c) display tasteful signage on sandwich board signs within the areas adjacent to the Premises during Tenant's regular business hours;
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the lease addendum provides several protections and rights for both the franchisee and the franchisor. Specifically, the addendum addresses key aspects of the lease agreement to safeguard the interests of Floyds 99.
One significant aspect is the franchisor's right to take over the lease. If the franchisee defaults, Floyds 99 has the option, but not the obligation, to assume the tenant's rights by taking an assignment of the lease and curing the default. This protects Floyds 99's interest in maintaining a location and brand presence. The addendum also voids any radius restrictions in the lease that might limit the operation of a Floyds 99 barbershop and eliminates any relocation clauses that would allow the landlord to move the tenant. These clauses ensure the franchisee can operate without restrictions that could negatively impact their business.
The addendum also grants the franchisee exclusive rights to operate a retail hair care business within the shopping center, preventing the landlord from leasing space to competitors. This exclusivity clause specifies that the landlord cannot lease to any business deriving more than 5% of its gross sales from haircuts or hair care products. If the landlord violates this exclusivity, the franchisee has the right to terminate the lease with thirty days' written notice. Furthermore, the addendum addresses signage, allowing the franchisee to display Floyds 99's trademarks and promotional banners, subject to applicable laws.
Finally, the addendum outlines procedures for the removal of trade dress and personal property upon termination or expiration of the lease or Franchise Agreement. Floyds 99 has the right, but not the obligation, to enter the premises and remove furniture, fixtures, equipment, and trade indicia associated with the brand. The franchisor is responsible for repairing any damage caused by such removal. Any modifications or amendments to the lease that affect Floyds 99's rights under the addendum require the franchisor's prior written consent, ensuring that the franchisor's interests are protected throughout the lease term.